Nostra Terra Oil And Gas Share Discussion Threads

[whoppy] 07/10/2015 14:26

BamBam, the wells are shut in for future production. Dabaa2x was an appraisal well to Dabaa1X and the reservoirs are not connected so they produce separately. The company chose not to develop them. It doesn't mean IRG/NTOG won't develop them. Probably when costs allow. Transglobal is a bigger company to IRG/NTOG so will have different priorities, hence why it's an opportunity. The gas wells were not paid for as part of the deal but come under the concession so IRG/NTOG can develop them maybe horizontally and improve production performance / decline.

[tidy 2] 07/10/2015 14:10

Guys Including Columbus 11,000 bopd @ $20 per barrel profit = $220,000 a day or $77,400,000 for the year.At the current PooCurrent Mcap £29mNo debt£12.5m in bankMarket re-rating the stock steadily. SQZ

[bam bam rubble] 07/10/2015 14:09

The gas venture flopped as the appraisal well was drilled in the hope of widening
the extent of the pool found in the first well, but it was "unconnected and small"
making the wells uneconomic in terms of life and decline rate. It was impaired to
nil and won't be developed regardless of what 'Greg' says, who seems to think IRG
is the operator (talk of 'managing' the project) when it's just a silent investor.

[cashandcard] 07/10/2015 13:56

BAM BAM,

Re. flowrates, yes they are an average over 24hours, testing was for much longer and not indicative of actual performance.

But I think they would have looked at that carefully in the DD, don't you?

Its all about the economics.

Consider the gas price has gone from under $3/mcf to around $3.5/mcf and signs are it will keep rising as the government accept there is a shortage of domestic gas supply in Egypt. A lot does require an improved oil price (for condensates), but the cost of services is falling aswell.

Regarding Transglobe, East Ghazalat is non-core for them and it needs better management. Transglobe were partners who spent tens of millions on development - I don't see the JV doing that at all. Certainly not before they have properly gone over all the reservoir data.

As Greg stated, they just want to manage it better, get costs down and look for upside in current wells (bypassed payzones) and exploit that.



Cash

[whoppy] 07/10/2015 13:54

Bam Bam, They have to write off the cost of the drilling for that reporting period because the gas wells are shut in and are not producing.

[andy] 07/10/2015 13:53

traingstock,

Why you are spamming this all over the BB?

Are NTOG and IRG paying you for promoting them?

[chinese investor] 07/10/2015 13:36

@ZaksTradersCafe @mlofgran
#NTOG # IRG #Nostra Terra and IRG Charlie Long, analyst at Sanlam Securities

[bam bam rubble] 07/10/2015 12:18

"we have gas/condensate fields with high flowrates"

A poor comment from IRGs CEO who should know better

The 'high flowrates' on test included a full day on open choke, which meant TGA
had to disclose that "The flowrate is not indicative of long-term performance"...
Also the zone was small so needed an appraisal well to see if it extended further.
That appraisal well only found another "small gas pool, unconnected to the one in
the first well" which led the company to write it off.

"the gas discovery and the wider North Dabaa license is not expected to attribute
any future value and has been impaired accordingly"

[andy] 07/10/2015 12:06

interesting comment!


Independent Resources and Nostra Terra, which are both party to a 50:50 JV with the express purpose to acquire E&P assets in North Africa, have agreed to acquire TransGlobe's East Ghazalat concession in Egypt.

TGA holds a 50% working interest in East Ghazalat, for which the JV is to pay $3.5m. This represents a significant premium to our value for the asset of $2m, and hence we see this as a positive deal for TGA.

The East Ghazalat concession had gross production of 880b/d in June 2015 (average), equating to production of 440b/d net to the JV. 2P reserves at East Ghazalat were estimated at c 1mbbl of oil at 30 June 2015, equating to a purchase price of $3.47/bbl.

[buffythebuffoon] 07/10/2015 11:42

Clearly ML/NTOG are proving themselves to be adaptable to the changing oil price environment. For that ML should take the credit.

There will be quite a number of opportunities out there for those able to restructure their finances. When the oil prices stabilises at a higher level, our White Buffalo assets will be developed.

Just like the stripper wells in Texas, low producing wells can always make money if the purchase price is right. Hopefully if ML continues to be as sure footed as he has demonstrated recently, NTOG will be a lot bigger in a few years time.

Buffy

[cashandcard] 07/10/2015 10:27

buffy,

Some fair points. I don't know about NTOG's early-stage US assets, but the Egyptian deal looks poised for some good growth if they can rework those wells with little cost. Even accounting for government take, it should be a good cash generator for the JV. Oil production is benchmarked to Brent ($52/bbl today) and sold to EGPC.

I look forward to a number of new assets in the next 6months.


Cash

[buffythebuffoon] 07/10/2015 10:22

Just to clarify, I haven't listened to the latest interview. I was referring to earlier interviews!

Buffy

[buffythebuffoon] 07/10/2015 10:15

I'm not ignoring the declines Cash, I just can't factor them in. I also can't factor in any workovers leading to increases in production. It was just a ballpark figure, showing that it's not the worse deal we could have done.

I've met Matt, and am still in two minds whether he's just a smooth talker or whether he'll be good for shareholders. Of course, those two things are not mutually exclusive.

I'll say one thing, he shows far more patience with the half wit interviewers he has to put up with than I would. Listening to online interviews between an O&G CEO and an uneducated and unprepared interviewer asking stupid questions is almost surreal.

I have a feeling that NTOG will go on to be a decent investment for me. I won't commit serious funds quite yet, as I feel there's some dilution to come. The D word is usually spat out, but I welcome it when the assets justify it. The trick is not to commit a big stake at the wrong stage in a company's development.

So, Matt Lofgran, investor focussed or solely number one? The jury is out for now.

I hope the AGM is once again in London. I'll be asking better questions than he's faced in recent interviews.

Buffy

[chinese investor] 07/10/2015 10:11

Thanks Cash !

It Was A Great Interview !

[cashandcard] 07/10/2015 10:10

Greg Coleman on new producing oilfield in Egypt, key points:



"6 wells currently producing with pump-jack, 1-2 flowing naturally"

"oil production trucked to nearby terminal and then goes for sale via existing infrastructure in western desert"

"first priority is to look at existing wells, make sure they are optimised, look for bypassed pay in those wells, look at increasing production in existing wells, new wells perhaps 6-12months away"

"$100,000 net monthly cashflow to IRG for effective 25% wi in field"

"We see potential to drill 5-10 more wells on this field, then we have gas/condensate fields with high flowrates"

"sets the stage for JV to do other things in Egypt and in the region"


www.proactiveinvestors.co.uk/companies/stocktube/4238/egypt-deal-sets-the-stage-for-further-expansion-says-independent-resources-boss-4238.html


Cash

[chinese investor] 07/10/2015 10:08

The Interview Answered My Questions !

[cashandcard] 07/10/2015 09:50

Greg Coleman on new producing oilfield in Egypt, key points:



"6 wells currently producing with pump-jack, 1-2 flowing naturally"

"oil production trucked to nearby terminal and then goes for sale via existing infrastructure in western desert"

"first priority is to look at existing wells, make sure they are optimised, look for bypassed pay in those wells, look at increasing production in existing wells, new wells perhaps 6-12months away"

"$100,000 net monthly cashflow to IRG for effective 25% wi in field"

"We see potential to drill 5-10 more wells on this field, then we have gas/condensate fields with high flowrates"

"sets the stage for JV to do other things in Egypt and in the region"


www.proactiveinvestors.co.uk/companies/stocktube/4238/egypt-deal-sets-the-stage-for-further-expansion-says-independent-resources-boss-4238.html


Cash

[whoppy] 07/10/2015 09:46

Currently IRG/NTOG's 25% share is netting $100,000 per month.

[cashandcard] 07/10/2015 08:51

BAM BAM Rubble
6 Oct'15 - 18:13 - 16651 of 16659 1 0


It's fact, Transglobe pay 50% of costs but only get 20% revenue after govt share.
NTOG and IRG are acquiring Transglobe's interest so each stands to get a net 10%
while paying 25% of op/drilling costs. At this oil price a license to lose money.
--------------------------------------------------------------

Greg stated in the interview they are looking at reworking current wells, looking for bypassed payzones etc. Not drilling - that will be a potential future project depending on oil prices.

The effective cost of the acquisition is $1mln - I suspect the JV will recoup that within 12months. Of course, in a couple of years time, they should have come up with the cash to settle the outstanding $2mln.

I doubt very much Greg and 'the boots on the ground' in Egypt would have taken this project on if they did not think they could substantially increase production, cashflow and reduce costs.


Cash

[andy] 07/10/2015 08:45

It's a shame it's being pumped, it will put off the more serious investors.

[michaelsadvfn] 07/10/2015 08:45

Well this company has gotten itself another finger in another pie...

an Egyptian one !

[cashandcard] 07/10/2015 08:41

buffy,


Not sure you can ignore declines. Otherwise, the cashflow is overstated.


Cash